91% of respondents believe that AI will disrupt their sector within five years compared to an average of 77% across all sectors. Over half (58%) think blockchain has the potential to disrupt their sector, slightly higher than the average of 57%. A third (33%) say that blockchain, AI and robotics are already being adopted in the industry and will become more widespread in the near future
Intertrust, a global leader in providing expert administrative services to clients operating and investing in the international business environment, interviewed private equity professionals across Europe, North America, the Middle East and Asia to identify the value-add delivered by new technologies now and in the future.
“According to the research, private equity firms are acutely aware of the impact digital innovation will have on their sector, particularly in the areas of Artificial Intelligence (AI) and blockchain.”
Over 90% believe AI is likely to have the biggest transformational impact on the sector. This is almost a fifth higher than the industry average of 77%. Over a third (37%) of respondents to the survey said that blockchain, AI and robotics are already being adopted in the industry and will become more widespread in the near future.
Table 1: Where private equity firms believe digital innovation is having the greatest impact
| Now | In 5 years | |
| More efficient back-office systems | 56% | 59% |
| Quicker due diligence process in completing a transaction | 37% | 59% |
| Screening potential investment opportunities | 32% | 59% |
| Improved risk management in a transaction | 27% | 56% |
| Improved investment decisions | 24% | 56% |
| Increased returns | 22% | 49% |
| Improved accuracy of decision-making | 24% | 46% |
| No noticeable impact | 22% | 12% |
| Client interfacing | 27% | 34% |
56% of respondents believe digital innovation is currently having the biggest impact on the back office, by generating greater operational efficiencies. 37% say innovative technology is also being deployed to speed up the due diligence process when completing transactions.
Michael Johnson, Director of Fund Services, Intertrust says: “The findings of our survey reflect growing levels of interest in using AI for handling large volumes of investor queries more efficiently by recognising questions being asked and recommending responses. This will also introduce more standardised responses, further reducing risk. Additionally, there is likely to be an emerging desire for firms to favour the use of blockchain for KYC-related activities.
“Over the next five years there is set to be huge demand for new Regtech solutions, which is recognised by nearly half of all respondents. New Regtech solutions bring previously unforeseen levels of automation to the regulatory compliance process, including reporting and monitoring. Often provided as a software as a service (SaaS) model, Regtech solutions are designed to boost transparency and support compliance with regulation such as KYC.”
About Intertrust
Intertrust (Euronext: INTER) is a global leader in providing expert administrative services to clients operating and investing in the international business environment. The Company has more than 2,500 employees across 41 offices and 29 jurisdictions in Europe, the Americas, Asia Pacific and the Middle East. Intertrust has leading market positions in selected key financial markets, including the Netherlands, Luxembourg, Jersey and the Americas. Intertrust delivers high-quality, tailored corporate, fund, capital market and private wealth services to its clients, with a view to building long-term relationships. The Company works with global law firms and accountancy firms, multinational corporations, financial institutions, fund managers, high net worth individuals and family offices.